By: Scott Redler
Over the past month or So I’ve tried to give the right strategy for Gold. I think I’ve been annoying people with how much I have talked about Gold, but I’m just trying to help! I sent four charts out four different times to enter Gold the right way.
You’ll see the four different tiers to buy on a chart. The last chart I sent on May 12th shows the historic high doji! Our rule is: you never buy historic highs. You sell some and celebrate for the moment.
Long-term success as a trader depends on your ability to initiate entries at the right time. Never chase moves, always use prudent entries as stocks or groups leave bases, and identify proper patterns and break outs.
So if you sold historic highs and didn’t chase, you could look to buy back on this pull-in at the 10 or 20-day moving average. GLD is opening today at 118ish right around or below the 10day which stands at 118.66. The 20day is probably where we go as the S&P bounces and this stands around 116.12. This is a more compelling area.
Strong stocks or strong groups usually pull back to their 10day or 20day, and if technicals remain intact they hold those levels. Look for that scenario in Gold.
